New products with a symmetric AIDS expenditure function

We study a symmetric AIDS expenditure function that allows for variation in the range of goods. Solving for the reservation prices for goods not available, a convenient form for the expenditure function is obtained. This functional form should prove useful in monopolistic competition models were the range of products changes due to entry and exit.

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Year of publication:	2010
Authors:	Feenstra, Robert C.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 106.2010, 2, p. 108-111
Publisher:	Elsevier
Keywords:	New products Translog AIDS Monopolistic competition

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008551411